[Direct answer]If the borrower fails to repay the loan, the lender may file a civil lawsuit for private lending with the people's court with jurisdiction in accordance with the law, and request the repayment of the principal and legitimate interest. The process is as follows: collect evidence such as promissory notes, transfer receipts, and chat records → draft a lawsuit → file a case with the court at the defendant's residence or the place of performance of the contract → hold a court hearing → issue a judgment → apply for enforcement. The statute of limitations is three years, starting from the expiration of the agreed repayment period or after the reminder. Failure to do so will result in the loss of the right to win the case. It is recommended to fix the evidence as soon as possible and collect the debt in time to interrupt the statute of limitations. Beijing Henglue Law Firm is here to assist you.Legal services for creditor-debtor disputesWe have extensive practical experience in this field. For more details about our related services, please refer to the following link.Beijing Henglue Law FirmYou can also refer to it for reference.Property buying and selling、Labor arbitrationYou can refer to the relevant columns to learn about the associated legal protection paths.

I. Legal basis and interpretation of provisions

1. Article 188 of the Civil Code of the People's Republic of China (effective from January 1, 2021)

The statute of limitations for suing in the people's court to protect civil rights is three years, unless otherwise provided by law. In private lending, the statute of limitations begins to run from the date when the right holder knows or should know that his rights have been infringed and the obligee's obligations have been breached. The lender should pay attention to suing or continuing to collect debts within three years to interrupt the statute of limitations and avoid losing the right to win the case due to exceeding the time limit. This is the first deadline that must be checked before suing.

2. Article 122 of the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021)

The article stipulates that the lawsuit must meet four conditions: the plaintiff has a direct interest in the case, has a clear defendant, has specific litigation requests and factual grounds, and belongs to the scope of acceptance by the court and the jurisdiction of the sued court. The lender must provide the defendant's identity information, evidence of the loan facts, and clear repayment requests when suing. The court reviews and files the case based on these, which is the procedural threshold for initiating litigation.

3. Practical adjudication guidelines

In practice, the court first examines whether the loan relationship exists: if the promissory note, transfer receipt, and chat records can corroborate each other, it is generally recognized that the loan is genuine. If the defendant refuses to appear in court without a valid reason after being legally summoned, the court may conduct a trial in absentia and make a judgment. After winning the case, if the other party fails to perform the obligation, the creditor shall apply for enforcement within the statutory time limit, provide clues to the property to be seized, frozen, and deducted, so as to avoid the creditor's rights being left unenforced. You can also pay attention to it.Personal injury,Special servicesAnd other columns.

II. Practical experience of Henglue Law Firm

Based on the practical observations of handling similar cases by Beijing Henglu Law Firm, the common forms of suing for unpaid loans are as follows: First, there are only WeChat transfers without a promissory note. The defendant may argue that it is a gift or a payment, so it is necessary to supplement the loan agreement with chat records; Second, there are no receipts for cash payments, which makes it difficult to provide evidence. It is advisable to write a promissory note or record the conversation as soon as possible; Third, if the defendant is uncontactable or refuses to appear in court, the court will make a default judgment, but it will be difficult to enforce the judgment; Fourth, if the statute of limitations has passed for more than three years and there is no proof of collection, there is a risk of losing the case. The most common pitfalls for litigants are "not fixing evidence by verbal reminders first" and "waiting until the defendant transfers his/her property before suing". When encountering unpaid loans, it is necessary to keep the promissory note and collection records at the same time as the transfer, and to evaluate the litigation and enforcement paths in time, rather than waiting until the other party is uncontactable to take remedial measures.

The core checklist for organizing evidence:It is recommended to prepare a simple checklist: the original loan note or loan contract, bank or third-party payment transfer receipts, the borrower's identity information, collection-related WeChat messages or written letters, and clues to the debtor's assets. The above materials directly determine whether the "loan relationship exists", whether the statute of limitations is interrupted, and whether the enforcement can be implemented. It is particularly important to apply for pre-litigation property preservation before suing to prevent the debtor from transferring assets; after the judgment, the enforcement application should be filed within the statute of limitations for enforcement. Whether choosing negotiation or litigation, the key is to transform the "loan facts" into a verifiable written evidence chain, rather than just relying on oral agreements. For more details about related services, please refer to the following link:Special servicesAndGeneral Legal Services for Intellectual Property EnterprisesFor such matters, if you encounter complex situations, it is recommended to consult a professional lawyer as soon as possible.

III. Frequently Asked Questions

Q1: Can I sue someone without a promissory note but only with transfer records?

Yes. Transfer records, chat records, audio recordings, and other evidence that can verify the lending agreement and the delivery of funds can also be used by the court to establish the lending relationship. It is recommended to fix the evidence as soon as possible, strengthen the lending agreement documents and collection records, and form a complete evidence chain to eliminate the controversy over the nature of the funds as a gift or loan, and increase the likelihood of winning the case.

Q2: If someone refuses to repay the money I lent them, which court should I sue them in?

Generally, the people's court of the defendant's domicile has jurisdiction; where the defendant's domicile and habitual residence are not the same, the court of the habitual residence shall have jurisdiction. The lender and borrower may agree on the place of performance of the contract, and the place where the party receiving the currency is located can usually be regarded as the place of performance of the contract. Before suing, the defendant's identity information and the jurisdictional connection points should be verified to avoid the case being returned for jurisdictional errors.

Q3: When does the three-year statute of limitations for litigation begin to count?

The statute of limitations shall commence three years from the date of expiration of the agreed repayment period; where no repayment period has been agreed upon, the creditor may give notice and set a reasonable time limit, and the statute of limitations shall commence from the expiration of the notice period. During this period, the statute of limitations may be interrupted and restarted by means of written collection, WeChat, litigation, etc. If the statute of limitations expires without any evidence of interruption, the debtor will lose the right to a favorable judgment if they raise a defense. Therefore, it is essential to collect debts in a timely manner and keep relevant records.

Q4: Will the court issue a verdict if the defendant fails to appear in court?

Yes. If the defendant refuses to appear in court without a valid reason after being legally summoned by the people's court, or leaves the courtroom midway, the court may conduct the trial and make a judgment in his/her absence. If the defendant still fails to perform the judgment after winning the case, the creditor may apply for enforcement within the statutory time limit, and provide clues to the court to seize, freeze, or deduct the defendant's property. The absence of the defendant does not affect the validity of the judgment or its enforcement.

Q5: If the other party refuses to pay after winning the lawsuit, how can I enforce the judgment?

It is necessary to apply to the court for enforcement within the statutory time limit, and submit clues to the other party's property. The court may seal up, freeze, and allocate deposits, and auction real estate and vehicles. If the other party really has no property, the court may terminate the current enforcement, but if new clues are found, the enforcement can be resumed; if necessary, an investigation order may be applied for or the number of defendants may be increased to continuously promote the realization of the creditor's rights.

IV. Suggestions for Protecting Rights and Interests

  • When borrowing money, sign a written IOU, specify the purpose of the transfer as "loan" in the transfer notes, and simultaneously keep the chat records to prove the agreement on the loan.
  • Before the expiration date, promptly send written reminders of collection and keep the relevant documents, in order to interrupt the three-year statute of limitations for litigation.
  • When the defendant goes missing or his/her assets are suspicious, apply for pre-litigation property preservation to prevent the transfer of assets before filing a lawsuit.
  • After winning the case, apply for enforcement as soon as possible and actively provide clues to the debtor's assets to increase the chances of recovering the money.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Beijing Henglue Law Firm